Demand planning is the operational activity of analyzing historical sales and transaction data to create reliable forecasts that will drive inventory replenishment and ordering activities. Effective demand planning should be a reliable process that guides inventory planners to improve the accuracy of revenue forecasts, align inventory levels with peaks and troughs in actual customer demand,...Read more
Inventory analysis is the technique used to determine the ideal level of inventory for a company to avoid stock outs or over stocking situations. Inventory analysis is particularly important for wholesalers of durable goods as market demands can fluctuate and vary greatly over time. Knowing your inventory, maintaining efficient processes...Read more
Safety stock inventory (also called buffer stock) is a term used by inventory and logistics managers to describe a level of extra stock that is maintained to mitigate risk of stockouts (shortfall in raw material) due to uncertainties in supply and demand. Safety stock is an addition to normal or...Read more